Goldman Sachs Highlights Potential Unemployment Surge Due to AI Integration
Goldman Sachs has issued a cautionary statement indicating that the rapid adoption of artificial intelligence could substantially elevate unemployment rates in the United States this year.
This trend is notably evident as prominent corporations undertake significant layoffs to incorporate automated systems.
According to insights from economists at Goldman Sachs, AI technology was responsible for a staggering monthly job loss of between 5,000 and 10,000 positions in the most susceptible sectors throughout the previous year.
The deployment of AI also accounted for 7 percent of the job cuts announced in January alone.
Several notable companies have recently disclosed substantial layoffs associated with AI deployment since last October:
- Agora: The Polish media enterprise revealed plans in December to cut up to 166 jobs, accounting for 6.56 percent of its workforce, as part of its digital transformation strategy.
- Allianz: The German insurance leader announced intentions to eliminate as many as 1,800 positions within its travel insurance sector, citing AI’s role in supplanting human tasks.
- Amazon: On January 28, Amazon confirmed the elimination of 16,000 corporate roles, with the possibility of further reductions as it seeks greater efficiency through AI integration.
- Autodesk: The design software firm declared on January 22 that it would reduce its global workforce by approximately 1,000 positions, about 7 percent, redirecting focus towards cloud platforms and AI initiatives.
- British American Tobacco: On February 12, the company introduced a productivity initiative propelled by AI technology, without disclosing the exact number of impacted positions.
- Dow: The chemical manufacturer announced on January 29 plans to cut around 4,500 jobs, or 13 percent of its total workforce, as it embraces automation through AI across its operations.
- HP Inc: In November, the computer manufacturer projected layoffs of between 4,000 and 6,000 positions globally by fiscal year 2028, as AI efficiencies streamline operations.
- MercadoLibre: The Brazilian e-commerce platform reported the elimination of 119 jobs in alignment with its AI expansion efforts, as per a January 12 article by Folha de S. Paulo.
- Meta: The parent company of Facebook and Instagram is executing layoffs of over 1,000 positions at its Reality Labs division, pivoting from Metaverse technology to AI initiatives.
- Nike: The sports apparel manufacturer revealed plans to cut 775 jobs, as reported by Reuters in January, as it strives for increased profits through automation.
- Pinterest: The social media platform announced it will reduce its workforce by up to 15 percent to reallocate talent towards AI-centric roles and strategic goals.
- SEB: The French appliance manufacturer unveiled a restructuring plan on February 25, potentially affecting up to 2,100 jobs globally by 2027 through AI capabilities.
- Telstra: Australia’s leading telecommunications firm intends to eliminate 650 positions as part of an AI-focused restructuring in partnership with India’s Infosys.
- WiseTech: The Australian software company publicized on February 25 its decision to cut around 2,000 positions, nearly one-third of its total workforce, integrating AI within both customer software and internal processes.
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